Rhythm PharmaceuticalsRYTM -6.13%54 Cash Ratio is 3.30 as of Mar. 2026, which is 51% below its 10-year median of 6.79. GuruFocus rates RYTM with a GF Score™ of 54/100 and a GF Value™ of $112.12 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,386 Biotechnology companies, Rhythm Pharmaceuticals ranks better than 52.6% on this metric.
Rhythm Pharmaceuticals has a Cash Ratio of 3.30. It generally indicates that the company is able to cover all short-term debt and still have cash remaining.
The historical rank and industry rank for Rhythm Pharmaceuticals's Cash Ratio or its related term are showing as below:
RYTM'
s Cash Ratio Range Over the Past 10 Years
Min: 2.23 Med: 6.79 Max: 39.68
Current: 3.3
During the past 11 years, Rhythm Pharmaceuticals's highest Cash Ratio was 39.68. The lowest was 2.23. And the median was 6.79.
RYTM's Cash Ratio is ranked better than 52.6% of 1386
companies
in the Biotechnology industry
Industry Median: 2.93
vs RYTM: 3.30
Rhythm Pharmaceuticals (NAS:RYTM) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Biotechnology subindustry, Rhythm Pharmaceuticals's Cash Ratio, along with its competitors' market caps and Cash Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Rhythm Pharmaceuticals Cash Ratio vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Rhythm Pharmaceuticals's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Rhythm Pharmaceuticals's Cash Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Rhythm Pharmaceuticals (RYTM) has a Cash Ratio of 3.30 as of Mar. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Rhythm Pharmaceuticals and its competitors. This is 51% below median its historical median of 6.79. Over the past decade, Rhythm Pharmaceuticals' Cash Ratio has ranged from 2.23 to 39.68. According to the industry distribution chart, Rhythm Pharmaceuticals ranks #657 out of 1386 companies in the Biotechnology industry, placing it in the top 47.4%.
Is Rhythm Pharmaceuticals' Cash Ratio too high?
Rhythm Pharmaceuticals' current Cash Ratio of 3.30 is 51% below median its 10-year median of 6.79. Over the past 10 years, this metric has ranged from a low of 2.23 to a high of 39.68. The Biotechnology industry median Cash Ratio is 2.93. Rhythm Pharmaceuticals' value of 3.30 is 12.6% above this industry median. Based on the distribution chart, Rhythm Pharmaceuticals ranks #657 out of 1386 companies in the Biotechnology industry, which is above the industry midpoint. Overall, Rhythm Pharmaceuticals has a GF Score™ of 54/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Rhythm Pharmaceuticals' Cash Ratio compare to MIRM and SYRE?
According to the Biotechnology industry distribution chart, Rhythm Pharmaceuticals ranks #657 out of 1386 companies for Cash Ratio. This puts Rhythm Pharmaceuticals in the upper half of its industry. The industry median Cash Ratio is 2.93. Rhythm Pharmaceuticals' value of 3.30 is 12.6% above this benchmark. Historically, Rhythm Pharmaceuticals' own Cash Ratio has ranged from 2.23 to 39.68 over the past decade. While the company's 10-year median is 6.79 vs. the industry median of 2.93, Rhythm Pharmaceuticals has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Ratio for a Biotechnology company?
The median Cash Ratio among Biotechnology companies is 2.93, based on 1,386 companies in the industry. Companies in the top quartile (top 25%) have a Cash Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cash Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rhythm Pharmaceuticals's current Cash Ratio of 3.30 is 12.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Ratio mean?
A high Cash Ratio can signal that a stock is expensive relative to its fundamentals. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Rhythm Pharmaceuticals and its competitors. For the Biotechnology industry, the median Cash Ratio is 2.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rhythm Pharmaceuticals's current Cash Ratio is 3.30, which is 51% below median its own 10-year median of 6.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rhythm Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, Rhythm Pharmaceuticals (RYTM) is currently considered Fairly Valued. The stock's GF Value™ is $112.12, compared to a current price of $108.40 — trading 3.3% below its estimated fair value. The current Cash Ratio is 3.30, which is 51% below median its 10-year median of 6.79 and 12.6% above the Biotechnology industry median of 2.93. Rhythm Pharmaceuticals' overall GF Score™ is 54/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Ratio calculated?
Cash Ratio is calculated from a company's financial statements. For Rhythm Pharmaceuticals (RYTM), the current Cash Ratio is 3.30 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Rhythm Pharmaceuticals (RYTM) Overvalued in 2026?
Based on GuruFocus' analysis, Rhythm Pharmaceuticals stock appears to be undervalued.
The current stock price of $108.40 is trading 3.3% below its estimated GF Value™ of $112.12.
GuruFocus considers Rhythm Pharmaceuticals to be Fairly Valued.
Key valuation signals for RYTM:
Cash Ratio: 3.30 (51% below median its 10-year median of 6.79)
GF Value™: $112.12 vs. price of $108.40 (3.3% below fair value)
Industry Position: 12.6% above the Biotechnology median (#657 of 1386)
No single metric tells the full story. See the RYTM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rhythm Pharmaceuticals Inc is a commercial-stage biopharmaceutical company engaged in the development and commercialization of therapies for patients with rare neuroendocrine diseases. The company is focused on advancing its melanocortin-4 receptor (MC4R) agonists, including its main asset, IMCIVREE (setmelanotide), as a precision medicine designed to treat hyperphagia and severe obesity caused by rare MC4R pathway diseases. In addition, it has two early-stage investigational MC4R agonists in clinical development, RM-718 and bivamelagon, designed not to cause hyperpigmentation. The company is also focused on advancing potential candidates for congenital hyperinsulinism. It currently operates in two business segments: the United States, which generates maximum revenue, and International.
54GF Score
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